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Nat Rothschild gains institutional backing for Bumi restructuring bid

11 Dec 2012

Renowned financier Nat Rothschild says he has secured the financial support of five powerful LP stakeholders in Bumi for his attempt to restructure the UK-listed mining company.

A total of 11 Bumi investors including the five largest – Abu Dhabi Investment Council, Schroders Investment Management, Standard Life Investments, Taube Hodson Stonex and Artmeis Investment Management – have commited to provide $342.5m of financing for the scheme, Rothschild has announced.

Rothschild sent a letter to the Bumi board last week informing them of the support for his proposal, which comes amid a bitter dispute with the Indonesian Bakrie family, a major shareholder in the company.

The family’s coal mining assets were combined with Rothschild’s Vallar company to create Bumi last year, but a steep drop-off in share price since then has caused friction between the camps.

The Bakries announced a $1.4bn bid to buy back their former operating assets in October, causing Rothschild to resign from the board to battle against the proposal.

Bumi director and co-chairman Indra Bakrie also resigned his positions, giving the reason that the Bakrie Group’s initial objective of pursuing a London listing had not been met.

The $342.5m equity commitment from investors includes Rothschild’s own pledge to put in $75m.